I have been thinking of buying a small amount of silver recently but one thing I would like to know is what are the factors that determine its price? What caused the silver spike of 1981 and 2011, were they related to market demand or something else? The reason I ask, is how is investing in silver or gold any different from the share market as many people suggest that the latter is considered speculative while precious metals are somehow more immune to price manipulation. One more thing is that if silver's price goes too high will this adversely affect manufacturers who use it in their products, and if so would their be artificial limits placed on silver's price to ensure suppy contracts (if any) can be maintained?
Any light shed on this topic would be much appreciated.
Any light shed on this topic would be much appreciated.